How record diesel prices will rip through the U.S. economy. Trucks and rails are only the start

The current price of diesel fuel is shown in Encinitas, California, U.S., Sept. 16, 2026. Mike Blake | ReutersEver since the outbreak of war with Iran earlier this year, motorists have been warily eyeing prices at the pump. While unleaded gas prices have largely avoided historic highs, the same can't be said for diesel fuel, which hit an all-time high of $6.31 per gallon on Wednesday. That was just the latest grim milestone in what has been a steady march upward. Economists and supply chain experts say what starts in the transportation sector, where trucking and rail companies are feeling the pain now — will eventually push prices on virtually everything in the economy up. This is not surprising, because diesel is the economy's single most universal tangible input, said David Russell, global head of market strategy at TradeStation Group. The first to feel it are freight haulers, but there will be plenty of other losers — consumers and companies — if diesel remains at record price levels. The chief commercial officer for Norfolk Southern railroad noted at a Morgan Stanley conference on Tuesday that in California, the price of diesel was already $8.Consumers are getting a taste of wh...